"Selling anything but straddles is for pussies" Don Schlessinger. Selling options to collect premium is clearly a tough business, but you should understand the theory. Every option is a "fair" bet - prices are distorted by skew and spreads, but I should view all options as equal bets - again skew and spreads distort this. Selling ATM is not a better or worse trade than selling and OTM. ATM has a higher premium commensurate to the fact that it requires more capital and a likely adjustment or closing trade. Is selling X Delta superior to selling 3X Delta? Again given, skew, capital, and spreads the answer becomes distorted, but is basically no. Yes, I will trade less and take in less premium, but the probability change of being hit compensates for that. I can make this a too-long post but understand the dynamics. A classic tale on the CBOE was the trader from a group who got fired after making some fabulous returns. Everyone focuses on success based on return and that's great, but very few are focus on themselves and what their return should have been. "I made a $million and they fired me. Why because they took $5million of risk. "Selling anything but straddles is for pussies." Don ran options education at Morgan Stanley. He plays a lot of poker and has a book out on it. He can occasionally be heard on The Options Insider podcast. He is also a senior exec of the VOLX exchange.
Ehhh, I personally don't respect anyone who speaks like that. What does he know...he's (just) an Educator...who spews out definitions, terminology, history and common examples. Those who can do, do -- those who can't, teach. Poker players, like most casino gamblers, are nothing but basic degenerates.
Looks like we have another James Cordier in the making. LOL Morgan Stanley better has ample insurance for their brokerage business if everybody who took this bozo's option education course ends up trading with Morgan Staley.
He doesn't care. He's 75. He doesn't give a s*** that people take his course and blow up their accounts.
It's immoral, unethical, shady, dirty, even should be illegal, .....to produce a course, or series of courses, education theory, subscriptions....knowing all too well that essentially 90-96% of your students will essentially, still, fail or get nowhere. All in the name to just enrich yourself at everyone's expense. and being able to broadly, legally, excuse yourself of any wrong doing....by saying that common, cliche, message disclaimer in tiny print: Past performance is not an indication of future results. Results not typical.
Ironic that you don't respect people who speak in a way you don't approve, but in the same sentence you disrespect Poker players (perhaps because you suck at poker). Let me educate you just a bit (with proven stats to back this up); There is a greater percentage of long term winning poker players than there are day traders.